Revenue Beat: Grand City Properties S.A. Exceeded Revenue Forecasts By 16% And Analysts Are Updating Their Estimates

Last week saw the newest second-quarter earnings release from Grand City Properties S.A. (ETR:GYC), an important milestone in the company's journey to build a stronger business. It was a mildly positive result, with revenues exceeding expectations at €147m, while statutory earnings per share (EPS) of €1.14 were in line with analyst forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Grand City Properties' six analysts are now forecasting revenues of €610.4m in 2025. This would be a reasonable 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 52% to €1.15 in the same period. Before this earnings report, the analysts had been forecasting revenues of €610.8m and earnings per share (EPS) of €1.05 in 2025. So the consensus seems to have become somewhat more optimistic on Grand City Properties' earnings potential following these results.

Check out our latest analysis for Grand City Properties

There's been no major changes to the consensus price target of €12.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Grand City Properties at €20.00 per share, while the most bearish prices it at €10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Grand City Properties' rate of growth is expected to accelerate meaningfully, with the forecast 4.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 21% per year. It seems obvious that as part of the brighter growth outlook, Grand City Properties is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Grand City Properties' earnings potential next year. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Grand City Properties going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Grand City Properties (2 are potentially serious!) that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.